My correspondent wondered why there was an international move to neo-Hooverism considering the differences in cultures between the various European countries and the US. . . . and he pressed for a reason why the rest of the world is on the same bandwagon, especially considering their more generous history with the welfare state. (He also mentioned that Tim Geithner was surprisingly Keynesian at the G20.)
After thinking about it for a bit, I’m not sure the same phenomenon we see here isn’t happening internationally. It’s an article of faith among financial elites across the planet that the welfare state is an abomination and this is a global opportunity to end it. Each culture will deal with it slightly differently --- riots in Greece, marches in France, blog posts in America. But in the end, the result, short of revolution, will be similar everywhere --- the post-war welfare state will be weakened or destroyed. The left is barely relevant anywhere anymore and [the elites] simply do not fear any kind of serious populist uprising. . . .
I think it's easy to over think this. The world economy is unstable for myriad reasons. But the reasons for insisting on austerity are fairly obvious. The question is whether or not people will see through this or not. Disaster capitalism depends upon the people being confused and stressed for its success. (In that sense, rioting in the streets may actually help them.) And all over the world right now, with the rapid change from globalization and resistance to modernity in general, there is a tremendous amount of social stress and cultural upheaval on top of this economic downturn. It's the perfect time to strike.
Apparently, the Coming Perfect Storm is here to wash away the Welfare State, not the Corporate and Financial Oligarchy. Most sorry for not foreseeing that. My bad.